Trading for a greener tomorrow

The way forward to meet the nationally determined contributions is a well-regulated domestic emission trading mechanism

The Government of India has taken a welcome step by notifying the Carbon Credit Trading Scheme (CCTS) in June under the Energy Conservation Act, 2001.

The scheme entails driving the market by setting greenhouse gas (GHG) emission intensity reduction targets for entities in selected sectors. The entities that exceed the set targets will be issued carbon credit certificates, while those failing to achieve the targets can meet the shortfall by purchasing these certificates from the market. Each carbon credit certificate will be equivalent to one tonne of CO2e (carbon dioxide equivalent). The scheme aims to develop a well-functioning regulated domestic